The leading manufacturer of mining hardware, Bitmain, suffered a total loss of $ 625 million in the first 6 months of 2019. Although, the company expects that high demand for new 7-nm chips will allow completing the year with positive results.
According to WeMedia, with a total operating income of $ 1.082 billion in the first quarter, in January and February, the Chinese company was forced to start selling obsolete devices (16 nm) at low prices, resulting in losses of $ 345 million and $ 280 million respectively.
This was partially offset by revenues of $ 315 million in March, but the company’s total losses amounted to $ 310 million in the first three months.
Bitmain expects positive results in the second half of 2019 when old hardware should be eliminated and the company will begin selling new 7-nm ones. It is reported that the manufacturer has already made a large order for 7-nm chips from Taiwan Semiconductor Manufacturing Company (TSMC). The delivery period is near 3-4 months.
The company also expects that in the 3Q, as orders for new devices arrive, cash flow will gradually increase, and explosive revenue growth will begin after the first deliveries.
Positive financial results will also be crucial in attracting new investors if Bitmain, which had previously intended to start an IPO in Hong Kong, is expected to apply to an initial public offering in the United States.
The company expects revenue growth from sales of products focused on the artificial intelligence industry. So, in the first quarter, Bitmain launched a line of products with the BM1684 cloud chip, which brought about $ 4.61 million in the 1Q of 2019.